Chapter 7 — Trading Representative

7.1.1

To be eligible for registration as a Trading Representative, an applicant must:—

(1) be at least 21 years old;

(2) be a fit and proper* person;

(3) possess a good track record of business conduct (if applicable);

(4) hold a licence from or be registered with the Relevant Regulatory Authority for the conduct of relevant regulated activities, unless exempted, and whose licence or registration is not suspended, revoked or expired. If SGX-ST is of the view that the regulatory requirements arising from the licence and registration are not comparable to those contemplated under the Act and this Rules, it shall have the discretion to prescribe additional requirements;

(5) not be a person whose registration or licence has previously been revoked by an exchange or a regulatory body, whether in or out of Singapore; and

(6) not be an undischarged bankrupt, whether in or out of Singapore.

Amended on 3 April 2008 3 April 2008, 29 November 2010 29 November 2010 and 19 May 2014 19 May 2014.

* SGX-ST shall evaluate "fit and proper" criteria in this Rule 7.1.1 in a manner similar to the MAS Guidelines on Fit and Proper Criteria.

7.2 Application Procedures

7.2.1

To become a Trading Representative, an applicant must apply to SGX-ST in the form SGX-ST prescribes. The application must be supported by a Trading Member as his or her principal.

7.2.2

SGX-ST may, in its absolute discretion, approve or reject an application to be a Trading Representative. SGX-ST is not obliged to give any reasons.

7.2.3

In approving an application to be a Trading Representative, SGX-ST may consult the Relevant Regulatory Authority.

Amended on 19 May 2014 19 May 2014.

7.2.4

Without derogating from Rule 7.2.2, SGX-ST may reject an application to be a Trading Representative if:—

(1) the applicant does not provide information relating to the application as SGX-ST requires;

(1A) any information or document that is furnished by the applicant to SGX-ST is false or misleading;

(2) execution against the applicant in respect of a judgment debt has been returned unsatisfied in whole or in part;

(3) the applicant has entered into an arrangement with his or her creditors that is still in operation, whether in or out of Singapore;

(4) SGX-ST is not satisfied with the financial standing of the applicant;

(5) the applicant breaches any provision involving fraud or dishonesty, whether in or out of Singapore;

(6) the applicant has been convicted of an offence under the Securities and Futures Act or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;

(7) the applicant is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;

(8) SGX-ST is not satisfied that he or she is a fit and proper person;

(9) SGX-ST has reason to believe that the applicant may not perform the functions efficiently, honestly and fairly;

(10) SGX-ST has reason to believe that the applicant may not act in the best interests of the Trading Member or the Trading Member's customers; or

(11) in SGX-ST's opinion, it would be contrary to the interests of the public to register the applicant as a Trading Representative.

Amended on 12 October 2005 12 October 2005 and 19 May 2014 19 May 2014.

7.3 Appeals

7.3.1

If SGX-ST rejects an application to be a Trading Representative, the applicant's principal Trading Member may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

Amended on 15 September 2017 15 September 2017.

7.4 Register of Trading Representatives

7.4.1

An applicant approved by SGX-ST as a Trading Representative will have his or her name entered in the Register of Trading Representatives.

7.4.2

Upon registration, a Trading Representative is deemed to have agreed to be bound by the Rules, or any Directives SGX-ST prescribes.

7.5 Obligations of a Trading Representative

7.5.1 Compliance

A Trading Representative must comply with the Rules, and any Directives SGX-ST prescribes.

7.5.2 Acting for a Trading Member

A Trading Representative must act for only 1 Trading Member.

7.5.3 Good Business Practice

A Trading Representative must adhere to the principles of good business practice in the conduct of his or her business affairs.

7.5.4 Payment of Fees

A Trading Representative must pay SGX-ST all fees, levies and charges as SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.

7.5.5 Register of Securities

(1) A Trading Representative sponsored by a Trading Member that holds a Capital Markets Services Licence must maintain a register of securities in accordance with the Securities and Futures Act. The register must include futures contracts.

(2) If asked by SGX-ST, a Trading Representative must produce the register for inspection.

(3) A Trading Representative must permit SGX-ST to take extracts of the register.

Amended on 3 April 2008 3 April 2008, 19 May 2014 19 May 2014, 29 December 2014 29 December 2014 and 8 October 2018 8 October 2018.

7.5.6 Other Businesses

(1) A Trading Representative must inform SGX-ST in writing at least 14 days before he or she engages in, or holds any substantial shareholding in, any other business that might potentially conflict with being a Trading Representative. The Trading Representative must ensure that the proposed engagement or shareholding is agreed to by his or her Trading Member.

(2) The engagement (and any actions taken under it) or shareholding must not breach the Securities and Futures Act, Securities and Futures Regulations, the Rules, any Directives or any relevant law or regulation.

(3) A Trading Representative must supply SGX-ST with any information it requires regarding the engagement or acquisition of shareholding.

(4) If SGX-ST objects to the engagement or acquisition of shareholding, a Trading Representative must not proceed with it. SGX-ST may extend the period specified in Rule 7.5.6(1). If extended, the Trading Representative must not proceed with the engagement or acquisition of shareholding before the expiry of the extended period.

(5) If an engagement or shareholding, in SGX-ST's opinion, is detrimental to the financial integrity, reputation or interests of SGX-ST, the principal Trading Member or its customers, SGX-ST may require the Trading Representative to end it.

(6) If SGX-ST objects to the engagement or acquisition of shareholding or requires a Trading Representative to end it, the Trading Representative may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

Refer to Directive No. 1.

Amended on 15 September 2017 15 September 2017.

7.5.7 Contact Details

A Trading Representative must inform SGX-ST in writing of any change in his or her residential or mailing address or contact numbers within 7 days of the change.

7.6 Remisier's Deposit

7.6.1

A Remisier must give a deposit of at least $30,000 to the Trading Member. It must be in the form of cash, Marketable Securities or a guarantee from a bank or financial institution operating in Singapore.

Amended on 23 January 2009 23 January 2009.

7.6.2

A Trading Member may require a Remisier to increase the amount of deposit or restrict the Remisier's volume of business if, in the Trading Member's opinion, the deposit is not enough for the volume of business transacted by the Remisier.

7.7 De-Registration

Amended on 19 May 2014 19 May 2014.

7.7.1

A Trading Representative will automatically cease to be registered as a Trading Representative if he or she:—

(1) becomes of unsound mind;

(2) is made bankrupt, whether in or out of Singapore;

(3) is subject to a compromise or scheme of arrangement with his or her creditors, whether in or out of Singapore;

(4) has execution in respect of a judgment debt returned unsatisfied in whole or in part;

(5) breaches any provision involving fraud or dishonesty, whether in or out of Singapore;

(6) has had his or her licence from or registration with the Relevant Regulatory Authority revoked, or his or her licence from or registration with the Relevant Regulatory Authority has expired; or

(7) in the case of a Trading Representative who is exempted from licensing or registration, has had his or her exemption from the Relevant Regulatory Authority withdrawn

Amended on 29 November 2010 29 November 2010 and 19 May 2014 19 May 2014.

7.7.2

The Exchange may terminate the registration of a Trading Representative if the Relevant Regulatory Authority imposes conditions or restrictions on the Trading Representative in respect of the relevant regulated activities.

Added on 19 May 2014 19 May 2014.

7.8 Deletion from Register

7.8.1

A Trading Representative who ceases to act for his or her Trading Member will have his or her name deleted from the Register of Trading Representatives upon the effective date of cessation.

7.9 Obligations of a Former Trading Representative

7.9.1

A former Trading Representative remains liable to SGX-ST for any liabilities incurred under the Rules or Directives during the period of his or her registration. The former Trading Representative also remains subject to disciplinary actions for any offence committed during the period of his or her registration.